Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
On April 23, 2020, Iconix Brand Group, Inc., a Delaware corporation (the
"Company"), received a letter from the Listing Qualifications Department of The
Nasdaq Stock Market notifying the Company that the minimum bid price per share
for its common stock fell below $1.00 for a period of 30 consecutive business
days (from March 11, 2020 through April 22, 2020) and that therefore the Company
did not meet the minimum bid price requirement set forth in the Nasdaq Listing
Rules.
The letter also states that pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the
Company will be provided 180 calendar days to regain compliance with the minimum
bid price requirement, and further notes that the Nasdaq has determined to toll
compliance periods for the minimum bid price rule through June 30, 2020,
extending the 180 calendar day compliance period to December 28, 2020. In
accordance with Rule 5810(c)(3)(A), the Company can regain compliance with the
minimum bid price requirement, if, at any time during such 180-day period, the
closing bid price of the Company's common stock is at least $1.00 for a minimum
period of 10 consecutive business days. If by December 28, 2020, the Company
does not regain compliance with the Nasdaq Listing Rules, the Company may be
eligible for additional time to regain compliance pursuant to Nasdaq Listing
Rule 5810(c)(3)(A)(ii). To qualify, the Company would need to submit a Transfer
Application and a $5,000 application fee. In addition, the Company would be
required to meet the continued listing requirement for market value of publicly
held shares and all other initial listing standards for The Nasdaq Capital
Market, with the exception of the minimum bid price requirement. In addition,
the Company would need to provide written notice to Nasdaq of its intention to
cure the minimum bid price deficiency during the second compliance period by
effecting a reverse stock split, if necessary. As part of its review process,
the Nasdaq staff will make a determination of whether it believes the Company
will be able to cure this deficiency. Should the Nasdaq staff conclude that the
Company will not be able to cure the deficiency, or should the Company determine
not to submit a Transfer Application or make the required representation, Nasdaq
will provide notice that the Company's shares of common stock will be subject to
delisting.
If the Company does not regain compliance within the allotted compliance
period(s), including any extensions that may be granted by Nasdaq, Nasdaq will
provide notice that the Company's shares of common stock will be subject to
delisting. At such time, the Company may appeal the delisting determination to a
Hearings Panel.
The Company intends to monitor its closing bid price for its common stock
between now and December 28, 2020, and will consider available options to
resolve the Company's noncompliance with the minimum bid price requirement, as
may be necessary. There can be no assurance that the Company will be able to
regain compliance with the minimum bid price requirement or will otherwise be in
compliance with other Nasdaq listing criteria.
© Edgar Online, source Glimpses